Avoid early repayment charge on 0% interest free loan

iwannapost

I recently had to purchase a new fridge freezer for which i chose a 9 month interest free loan, which I have decided to contribute £50 a month towards.

If the loan is completely paid off before the 9 months is up I will be charged an additional £25 'early payment fee'.

If the loan is not paid off early then any outstanding balance will accrue apr.

My question is, would I be able to leave £1 outstanding on the account and then as soon as the 9 month interest free period has lapsed, then pay this off 2 days later accruing minimal apr charges?

Surely I save myself money doing this? Has anyone tried this? Does anyone know of anything preventing me from doing this?
Obviously I have read all the terms & conditions but can't find anything relating to this.

jonesMUFCforever

No imo. If you don't clear the balance off in full you will be liable for the whole 9month interest.
If this is less than £25 then you know what to do.

iwannapost

OMG I am certainly not paying the 9 months interest!!! Thank you, I knew there would be a catch, just trying to see if there was anyway round the £25 fee. No such thing as a FREE 0% loan then. Still works out cheaper than putting it on the credit card for 9 months.

Thanks for your knowledge.

opinions4u

Please can you clarify exactly what the £25 is for?

These things are often for "early payment by credit card" or similar. Not early payment by other methods.

jonesMUFCforever

opinions4u wrote: »

Please can you clarify exactly what the £25 is for?

These things are often for "early paymnt by credit card" or similar. Not early payment by other methods.

A lot of these buy now pay later loans have a final fee of £25 if you want to pay off the balance before the interest kicks in.
It's in the small print.